Your debt-to-income ratio (DTI) compares the total amount you owe every month to the total amount you earn. ... Your income is not included in your credit report, so your DTI never affects your credit report or credit score. However, many lenders calculate your DTI when deciding to offer you credit.

Does debt-to-income ratio affect your credit score?

Your debt to income ratio doesn't impact your credit scores, but it's one factor lenders may evaluate when deciding whether or not to approve your credit application.

Is DTI more important than credit score?

However, there may be a number used by mortgage companies and banks with even more impact than your credit score: Debt-to-income Ratio or (DTI). ... DTI is calculated both prior to a mortgage and with a mortgage. This percentage helps lenders determine the kind of borrower you'll be. The smaller the percentage, the better.